ACQUISITION: Precision Castparts Acquires Scotland’s Caledonian Alloys

Jason Sandefur

Precision Castparts Corp. has agreed to acquire Caledonian Alloys Group Ltd, a provider of nickel superalloy and titanium revert management for the aerospace and industrial gas turbine industries.\
Revert involves re-melting and reusing byproducts from fastener manufacturing, casting and forging. Revert includes metal chips, casting gating, bar ends, forging flash and other byproducts.
“At today”s metal prices, managing the revert stream from our manufacturing process casting, forging and machining is crucial,” CEO Mark Donegan explained. “Caledonian significantly improves our ability to capture this value stream, creating a closed-loop system for the retention and reuse of internally-generated revert.”
Livingston, Scotland-based Caledonian also has operations in Huntington, WV; Hereford, England; and Pizen, Czech Republic.
Terms of the transaction were not announced. It is expected to close during the second fiscal quarter of 2008.
Caledonian will become part of PCC”s Forged Products segment.
In just over three years, Precision Castparts has built a $1.25 billion fastener business. Amidst a booming aerospace market, Portland, OR-based Precision Castparts reported fastener product sales grew 19% to $1.25 billion during fiscal 2007, with segment operating profit gaining 50% to $265.5 million.
In February PCC added Cherry Aerospace, bought for $300 million from Acument Global Technologies (the former Textron Fastening Systems), to its aerospace fastener business, which includes Air Industries and critical aerospace fastener maker Shur-Lok.
Precision Castparts assembled its fastener division by acquiring SPS Technologies in 2003 for $893 million and airframe fastener manufacturer AIC in early 2005 for $194 million.
PCC supplies structural and airfoil components for the aircraft engine and industrial gas turbine industries and has diversified into non-aerospace businesses. The company has more than 80 facilities in 22 states and 16 countries. �2007 FastenerNews.com